Pirate Bay Buyer Says Deal Nearly Done

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Pirate Bay Buyer Says Deal Nearly Done

Global Gaming Factory's stock skyrocketed Thursday after it announced it has secured financing for its planned purchase of The Pirate Bay, the world's most notorious and illegal file sharing site.

The Swedish-based software concern's stock surged 150 percent, to 15 cents, following Thursday's news that it has secured financing for the $7.7 million cash and stock deal in hopes of turning the illicit site into a legal, pay-to-play destination for videos, games, music and software.

The company's announcement came two days after rampant speculation that the deal to transform The Pirate Bay into a legitimate site was faltering.

Hans Pandeya, Global Gaming Factory's chief executive, said Thursday unidentified financiers have agreed to the deal, which is expected to close Aug. 27. Shareholders must also give the green light, which appears likely, as Pandeya and other company executives are its principal shareholders.

"The Pirate Bay is back. We are looking forward to a successful completion of the acquisition of The Pirate Bay, one of the world's top 100 sites," Pandeya said in a statement. The announcement was published by AktieTorget, a Swedish-based exchange listing Global Gaming Factory's stock, which has seesawed since the proposal was announced last month.

The developments also come as an Amsterdam court ruled Thursday that The Pirate Bay must cease operations within 10 days in The Netherlands or face millions in fines. Hollywood studios are seeking to have the BitTorrent tracking site – as it now currently operates – shuttered worldwide.

The Pirate Bay's four founders of the 5-year-old site were convicted in Sweden this spring of facilitating copyright infringement. They remain free of their year-long sentences pending appeals.

What's more, Global Gaming Factory said it is mulling whether to assume The Pirate Bay as its new namesake as part of the transaction, which has left many skeptical of its proposed business model.

The idea is to convert as many as 20 million consumers who use the site from pirates to paying customers. The free video games, pre-release Hollywood blockbusters and gigabyte-length discographies that currently dominate the site’s most-popular list will be gone, replaced by whatever content the movie, music and software industries agree to market on the site.

The company said in a statement that it is in "final negotiations" with a "global player" to help bring its business model to fruition.